Summary
AUbisoftinvestor is telling the company to go private, and it believes that management needs a change too.Ubisoftwent public in 1996, and so the call for a shift back to a private entity is not a good sign.
Somerecent Ubisoft games have not performed as well as expected, leaving some fans worried. The company’s stock dipped following the launch ofStar Wars Outlaws, leading the company to a near 10-year low.Star Wars Outlawswas generally well-received, but hasn’t been as big of a hit as some expected it to be.
Juraj Krupa of AJ Investments, a significant minority stakeholder of Ubisoft, has penned aletter that recommends taking the company private. Additionally, the letter suggests a potential solution to Ubisoft’s current issues is a management change. This has come off to many as a suggestion thatUbisoft CEO Yves Guillemotshould step down as CEO, and that a radical shift in strategies is needed for Ubisoft’s survival.
Ubisoft Investor Calls For Change
Krupa and AJ Investments propose two other strategies to ensure that Ubisoft can succeed. One of these strategies is cost reduction and staff optimization, which may signal further layoffs in the future. Krupa explains that althoughrecent Ubisoft layoffshave amounted to dropping 10% of the company’s workforce, “that is simply not enough.” Investors hope that by taking this drastic measure, the company can streamline development while lowering debt.
The additional strategy the investor suggests employing is focusing more on Ubisoft’s “core IPS.” Krupa and AJ want to see Ubisoft prioritizeRainbow Six Siege,Assassin’s Creed,Far Cry,Watch Dogs,andTom Clancygames. The proposals issued by AJ Investments have been put forth with a deadline of 60 days before a stronger push against management takes place.
Ubisoft
Ubisoft is a well-known video game developer and publisher with a main headquarters in Saint-Mandé, France. Current CEO Yves Guillemot runs an array of teams responsible for some of the most iconic and well-known series in video games, with franchises like Assassin’s Creed, Farcry, The Crew, Just Dance, and more. Ubisoft also acts as a parent company for an array of other video game developers, including names like Massive Entertainment, Ubisoft Paris, Blue Mammoth Games, Red Storm Entertainment, and more.
